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Nigeria gets World Bank $1.5bn loan
Nigeria gets World Bank $1.5bn loan
The World Bank has disbursed a $1.5 billion loan to Nigeria under the Reforms for Economic Stabilisation to Enable Transformation (RESET) Development Policy Financing initiative.
The loan, approved on June 13, 2024, was released in record time following Nigeria’s implementation of critical reforms, including the removal of fuel subsidies and comprehensive tax policies.
This fast disbursement contrasts with other loan programmes, which typically experience delays due to slow or partial implementation of conditions.
For instance, the World Bank has also disbursed $1.88 million of a $750 million loan for the Accelerating Resource Mobilization Reforms (ARMOR) project, approved alongside the RESET programme.
Loan disbursement timeline
- The first tranche of $750 million, a credit facility under the International Development Association (IDA) with a 12-year maturity and six-year grace period, was disbursed on July 2, 2024.
- The second tranche of $750 million, issued by the International Bank for Reconstruction and Development (IBRD) with a 24-year maturity and 11-year grace period, followed in November 2024.
The World Bank document read: “This document summarizes the progress made under the Reforms for Economic Stabilization to Enable Transformation Development Policy Financing for the Federal Republic of Nigeria (Borrower or Recipient), which was approved by the Executive Directors on June 13, 2024.
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“The DPF is a standalone operation comprised of two tranches: (1) first tranche comprising US$750 million credit from the International Development Association (Association) (Shorter Maturity Loan terms with 12-year maturity and grace period of 6 years, Credit No. 7567-NG); and (2) second tranche comprising US$750million loan from the International Bank for Reconstruction and Development (Bank) (US dollar-denominated, commitment-linked loan with 24-year maturity and grace period of 11 years, Loan No.9683-NG). The Financing Agreement and Loan Agreement were signed and declared effective on June 19, 2024 and June 26, 2024, respectively. The first tranche was released on July 2, 2024.”
Key reform conditions
A major trigger for the second tranche was the removal of fuel subsidies. The reforms allowed petrol prices to reflect international market rates and exchange rates, effectively ending implicit subsidies that strained public finances.
The deregulation, which began in mid-2023, saw petrol prices increase more than fivefold, drawing praise for fiscal discipline but sparking criticism over the rising cost of living.
The World Bank commended the government for not only meeting the condition but exceeding expectations by fully deregulating the fuel market.
The document noted: “In terms of implementation, while the TRC [Tranche Release Conditions] formulation required introducing the change over a specified time-bound implementation period, the Borrower has moved ahead and made the change immediately, thereby overachieving the TRC in this respect.
“Effective October 2024, the price of PMS has been determined by the international market and the exchange rate set by the Central Bank of Nigeria.”
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Additional reforms included the introduction of the Nigeria Tax Bill 2024, proposing a gradual increase in Value Added Tax (VAT) to 10% by 2025 and streamlining tax compliance processes.
The document read: “The Borrower has successfully carried out the program as outlined in the Letter of Development Policy, with progress along all areas supported by the DPF. Following the implementation of the reforms that constituted prior actions for the first tranche of the RESET DPF (disbursed on June 28, 2024), the Borrower continues to carry out the program as planned.
“The Borrower has prepared and submitted to the National Assembly on October 3, 2024, a comprehensive package of tax reforms, which not only reform the VAT regime but also simplify tax policy laws and tax administration.
“Reforms have also been implemented to fully deregulate the fuel market, ensuring that retail prices are determined by market conditions and opening the sector to competition. The authorities are following through on their commitment to cease deficit monetization, relying instead on standard debt instruments to finance the deficit.”
The government also submitted amendments mandating the use of the National Social Registry for social investment programmes.
Socioeconomic impact and relief measures
Despite commendations from the World Bank for exceeding reform targets, the impact of these changes has sparked public dissent. Fuel subsidy removal has led to surging transportation and living costs, triggering protests in major cities like Lagos, Kano, and Abuja.
To cushion the effects, the Federal Government introduced N25,000 monthly cash transfers for 15 million vulnerable households.
However, only about four million households have benefited so far, falling significantly short of the target. Efforts are also underway to promote compressed natural gas (CNG) as a cheaper fuel alternative, with plans to convert over one million vehicles in three years.
Nigeria gets World Bank $1.5bn loan
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Nigeria Customs debunks fake recruitment update, warns job seekers
Nigeria Customs debunks fake recruitment update, warns job seekers
The Nigeria Customs Service (NCS) has warned Nigerians to disregard a fake recruitment update circulating on social media, stating that the publication did not originate from the Service and should not be trusted.
In a statement released on Thursday, the NCS described the recruitment notice as false and advised prospective applicants to rely only on information released through its official communication channels.
According to the Service, the fake publication is part of a growing trend of recruitment scams in which fraudsters exploit the desire of Nigerians seeking government jobs by circulating false employment notices and demanding money or sensitive personal information from unsuspecting victims.
“The Nigeria Customs Service (NCS) wishes to inform the public that the purported recruitment update currently circulating on some social media platforms is fake and did not originate from the Service,” the statement said.
The Service urged Nigerians to verify every recruitment-related announcement before acting on or sharing it, warning that misinformation could expose job seekers to fraud and identity theft.
It stressed that all official information regarding Nigeria Customs recruitment, promotions, screening exercises and other activities is published only through its verified communication platforms.
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The NCS advised members of the public to follow its verified Facebook page (Nigeria Customs Service) and its official Instagram, X (formerly Twitter), Threads and TikTok accounts under the handle @customsng for authentic updates.
“Members of the public are advised to disregard the publication and rely only on information disseminated through the official communication channels of the Nigeria Customs Service,” the statement added.
The Service also reminded applicants that it does not charge any fee at any stage of its recruitment process, warning that anyone requesting payment in exchange for employment should be regarded as a fraudster.
The latest advisory comes amid a resurgence of fake recruitment notices targeting applicants following increased public interest in employment opportunities within government agencies.
In recent months, the NCS has repeatedly disowned forged recruitment documents, fake screening schedules and fabricated Computer-Based Test (CBT) notifications circulated online by scammers attempting to deceive job seekers.
The Service reaffirmed its commitment to transparency, fairness and merit in its recruitment process, assuring Nigerians that whenever recruitment begins, the public will be informed through its official website and verified social media platforms.
It further urged citizens to remain vigilant by avoiding unofficial recruitment websites, refusing to make payments for employment offers and reporting suspected recruitment scams to relevant security agencies.
The NCS concluded its advisory with a reminder to Nigerians: “Stay vigilant. Verify information before sharing.”
As recruitment scams continue to evolve, the Service encouraged applicants to confirm any employment-related information through official sources before submitting applications or personal details.
Nigeria Customs debunks fake recruitment update, warns job seekers
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ICPC uncovers 908 suspected ghost workers in Police, other federal agencies, recovers ₦942m
ICPC uncovers 908 suspected ghost workers in Police, other federal agencies, recovers ₦942m
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) has uncovered 908 suspected ghost workers across at least 50 federal Ministries, Departments and Agencies (MDAs), with the Nigeria Police Force (NPF) accounting for the highest number of suspected fraudulent payroll entries.
The anti-corruption agency disclosed that the nationwide payroll verification exercise also led to the recovery of about ₦942 million in salaries allegedly paid to fictitious employees, describing the discovery as a significant breakthrough in its ongoing efforts to eliminate payroll fraud and improve accountability in the public sector.
Speaking on the findings, ICPC Chairman, Dr. Musa Adamu Aliyu (SAN), said the investigation exposed widespread manipulation of government payroll systems through the insertion of fictitious names, ineligible beneficiaries and non-existent employees into salary records.
According to the commission, ghost workers are individuals whose names are fraudulently inserted into government payrolls to illegally receive salaries despite not being legitimate employees. In some cases, public officials allegedly add the names of relatives, friends or associates to the payroll and divert the salaries for personal gain.
Aliyu revealed that investigators uncovered one case involving a suspect who allegedly placed the names of his wife, son and mother-in-law on the payroll while simultaneously collecting salaries meant for 12 other fictitious workers.
The Nigeria Police Force recorded the highest number of suspected ghost workers, with 570 names flagged during the verification exercise.
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The National Water Resources Authority followed with 80 suspected ghost workers, while the Federal Ministry of Works recorded 56.
Other agencies affected include the Federal Ministry of Foreign Affairs, which had 24 suspected ghost workers, the Federal Ministry of Defence with 19, and both the Federal Ministry of Power and the Federal Ministry of Industry, Trade and Investment, each with 17 suspected ghost workers.
The Federal Ministry of Health recorded 15 suspected ghost workers, while the Office of the Head of the Civil Service of the Federation had 12.
The Office of the Accountant-General of the Federation and the Federal Ministry of Interior were also identified as agencies affected by payroll fraud, although the ICPC did not disclose the number of suspected ghost workers linked to the two institutions because investigations are still ongoing.
The commission explained that the payroll audit forms part of its broader strategy to support the Federal Government’s drive to eliminate financial leakages from the Integrated Personnel and Payroll Information System (IPPIS) and strengthen transparency in public financial management.
As part of the anti-graft campaign, the ICPC recently secured a final forfeiture order from the Federal High Court in Abuja for approximately ₦942 million traced to accounts linked to the payroll fraud scheme. The recovered funds have been forfeited to the Federal Government.
The commission disclosed that an earlier phase of the investigation initially identified 587 suspected ghost workers during a joint payroll audit conducted with the Office of the Accountant-General of the Federation. Following further verification, 120 individuals were confirmed to be legitimate employees, while investigations into the remaining suspicious accounts continue.
Aliyu said the ICPC would continue to deploy technology, data analytics and collaboration with relevant government agencies to detect payroll fraud, recover stolen public funds and prosecute anyone found culpable.
He also urged heads of ministries, departments and agencies to strengthen internal control systems, conduct regular personnel audits and ensure strict compliance with payroll verification procedures to prevent future abuses.
The ICPC reaffirmed its commitment to sanitising the Federal Government payroll system, blocking revenue leakages and promoting transparency, accountability and prudent management of public resources.
ICPC uncovers 908 suspected ghost workers in Police, other federal agencies, recovers ₦942m
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How to apply for FG’s YouthCred loan and qualify for up to ₦2 million
How to apply for FG’s YouthCred loan and qualify for up to ₦2 million
The Federal Government has launched YouthCred for Entrepreneurs, a new financing initiative designed to provide collateral-free business loans of between ₦200,000 and ₦2 million to young Nigerians running micro and small businesses.
The programme, unveiled in Abuja, is part of the government’s broader effort to improve access to affordable credit, reduce barriers to entrepreneurship and support the growth of Micro, Small and Medium Enterprises (MSMEs) across the country.
According to the government, the initiative will initially support 500,000 young entrepreneurs, with plans to expand the programme to one million beneficiaries before the end of the year.
Unlike conventional bank loans that often require collateral and guarantors, YouthCred uses an alternative credit assessment model that evaluates applicants based on their business cash flow, repayment capacity and credit behaviour.
Who is eligible to apply?
To qualify for the YouthCred loan, applicants must:
- Be between 18 and 35 years old
- Own or operate a business
- Demonstrate responsible credit behaviour
- Show evidence of business cash flow and ability to repay the loan
- Complete the required verification process
How much can applicants borrow?
Eligible entrepreneurs can access loans ranging from:
- Minimum: ₦200,000
- Maximum: ₦2 million
The amount approved will depend on the applicant’s business performance, repayment capacity and credit assessment.
Who can benefit?
The programme targets young Nigerians operating small businesses and providing essential services, including:
- Caterers
- Fashion designers and tailors
- Make-up artists
- Hairdressers and barbers
- Content creators
- Ride-hailing drivers
- Mechanics
- Young farmers
- National Youth Service Corps (NYSC) members
- ICT professionals
- Other eligible micro and small business owners
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How to apply for the FG’s YouthCred loan
Applicants can complete their application online by following these steps:
Step 1: Visit the official YouthCred application portal.
Step 2: Create an account using your email address and personal details.
Step 3: Select the Youth Entrepreneur category.
Step 4: Fill in the online application form with accurate personal and business information.
Step 5: Upload the required identification and verification documents.
Step 6: Submit the application for verification and credit assessment.
Step 7: If successful, the application will be processed through participating regulated financial institutions before the loan is disbursed.
Is collateral required?
No.
One of the major advantages of the YouthCred programme is that applicants are not required to provide collateral or guarantors.
Instead, loan approval is based on:
- Business cash flow
- Credit history
- Repayment capacity
- Overall financial assessment
Flexible repayment options
Successful applicants can repay the loan over a period of one to 12 months, depending on the repayment plan that best suits their business and financial situation.
The flexible repayment structure is intended to make borrowing more accessible while encouraging responsible financial management.
How to increase your loan limit
Borrowers who perform well under the programme can qualify for larger loans in future by:
- Repaying previous loans on time
- Building a positive credit history
- Completing the platform’s financial literacy and business training modules
Government explains purpose of the scheme
Speaking at the launch, the Minister of Finance and Coordinating Minister of the Economy said the initiative was created to unlock the entrepreneurial potential of young Nigerians by giving them access to affordable financing.
According to the minister, more than 90 per cent of Nigeria’s MSMEs are microenterprises operated by individuals such as caterers, mechanics, fashion designers, ride-hailing drivers, content creators and young farmers.
He said improving access to credit would help these entrepreneurs expand their businesses, create jobs and contribute more to national economic growth.
The Managing Director and Chief Executive Officer of the Nigerian Consumer Credit Corporation (CREDICORP), Uzoma Nwagba, said the government intends to reach 500,000 beneficiaries in the first phase and one million young Nigerians before the end of the year.
He encouraged beneficiaries to repay their loans promptly, noting that responsible borrowing would strengthen their credit profiles and allow more Nigerians to benefit from the programme.
The Federal Government said the initiative forms part of its broader strategy to promote financial inclusion, stimulate entrepreneurship and empower young Nigerians with affordable access to business financing.
How to apply for FG’s YouthCred loan and qualify for up to ₦2 million
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